It has been selected by France as the latest "French Tech Hub", which means that it has been designated a nursery for start-up businesses and emerging technologies in partnership with French companies.
It also means that local talent can be recruited for innovations and start-ups.
Other major cities assigned such status include Moscow, New York, San Francisco, Tel Aviv and Tokyo.
Michelle Matthews, innovation programme manager for the Cape Innovation and Technology Initiative, said: "France has a very active start-up scene" and Cape Town would now "share lessons and make connections with French innovators, large and small".
A web portal has been created to provide information about the local economic partners, useful contacts and measures to support start-up companies.
The French ambassador to South Africa, Elisabeth Barbier, said: "This success rewards all the efforts made by a dynamic community of French entrepreneurs, rooted in Cape Town, and takes advantage of the leading innovation ecosystem in Cape Town."
She said the "business and human talent exchanges" between South Africa and France would be facilitated.
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